Member-only story
How One Tweet Led to $100B in Crypto Market Losses
Crypto is a highly speculative market; when confidence gets shaken, everything gets rocked in a hurry.
In business, just like in life, it's essential to understand the people you are getting in bed with. Binance CEO Changpeng Zhou (CZ) squashed one of his biggest competitors, FTX, with a single Tweet. And now, he may be lined up to pick up their assets and clients on the cheap. In an ironic twist, FTX CEO Sam Bankman-Fried (SBF) could only seek a bailout from the man who destroyed his company.
Just like I wouldn't try to pretend I understand what goes on in the mind of a chess champion before making their next move, I probably shouldn't try and guess why this happened. However, regardless of the motivation, many lost a lot of money. And it's worth taking a closer look at the situation and how, as investors, we can prepare ourselves for the next crypto fallout event.
The Lead-Up
Just like relationships don't typically end for one reason alone, there was intense buildup leading to FTX's swift downfall.
Trouble for FTX began brewing about one week ago. First, Coindesk published an article raising questions about the assets and liabilities of FTX and Alameda Research. FTX was one of the…
